Supreme Court Nixes $9M Wachovia CDO Arbitration Appeal

Law360, New York (May 21, 2012, 3:27 PM EDT) -- The U.S. Supreme Court on Monday declined to hear an appeal from a U.K. hedge fund after its allegation that Wachovia Bank NA was required to go to arbitration over a $9 million credit default swap was shot down by the Second Circuit.

Plaintiff VCG Special Opportunities Master Fund Ltd., a subsidiary of VCG set up specifically for the CDS, petitioned for a writ of certiorari after the appeals court ruled in October that Wachovia Capital Markets, an investment banking unit of Wachovia, did not have...